Saudis, Russians Issue Statement in Praise of Stable Oil Prices

The Russian and Saudi energy ministers say both countries are seeking a stable and balanced oil market following a price war they waged just weeks ago. Prince Abdulaziz bin Salman of Saudi Arabia and his Russian counterpart, Alexander Novak, issued the statement after a phone conversation on Wednesday. “We are… pleased with the recent signs of improvements in economic and market indicators, especially the growth in oil demand and the ease in concerns about storage limits as various countries around the globe begin to emerge from their stringent [coronavirus] lockdowns,” they said. On Monday, Riyadh announced it would further cut production by a million barrels a day starting in June. As recently as April, Saudi Arabia and Russia were involved in a noisy feud over an oil glut, with Riyadh threatening to increase production and force prices down to a level that Moscow could ill-afford. Russia finally agreed to scale back to a point the kingdom could live with. The price war, together with a plunge in demand due to the pandemic, exacerbated the glut and sent markets plummeting to 20-year lows.